Quick view: Gold rebounds on global cues, low-level buying

Updated: Jan 31 2014, 08:42am hrs
Snapping two days losses, gold prices rose by R240 to R30,600 per 10 gm in the Capital on Thursday on emergence of buying at existing lower levels amid a firm global trend. Silver followed suit and recovered by R300 to R44,500 per kg on increased offtake by industrial units. A similar trend was noticed in Mumbai, as gold of 99.9% and 99.5% purity shot up by R180 and R185 to R30,260 and R30,110 per 10 gm, respectively; and silver gained R150 to R45,050 per kg on fresh buying by stockists. Gold in New York, which normally sets the price trend on the domestic front, rose by 0.96% to $1267.70 an ounce and silver by 0.77% to $19.71 an ounce. In addition, shifting of funds from weakening equities to rising bullion further supported the uptrend, they said.

Proposal on raw sugar sop not taken up by CCEA

The Cabinet Committee on Economic Affairs (CCEA) on Thursday did not take up the proposal to give a cash subsidy of R2,000 per tonne for export of 4 million tonne of raw sugar for two years. Due to paucity of time, the sugar proposal could not be taken up, food minister KV Thomas said after the mee-ting. Sources said agricult-ure minister Sharad Pawar is in favour of an incentive not less than R3,500 per tonne to encourage produ-ction and export. Industry body ISMA has suggested an incentive of R3,500 as well. Raw sugar exports from India are currently not viable as global prices are ruling lower than the domestic production cost of R26,500 per tonne. Mills are facing a cash crunch as well as prices have come down below the cost of production in view of surp-lus supplies. They are also saddled with cane arrears.